Off-Plan Property Investment in Phuket: What You Need to Know

Investing in off-plan property in Phuket, Thailand, has become an increasingly popular choice among both local and international buyers. This strategy allows investors to purchase real estate before construction is completed, often at a significantly lower price compared to fully finished properties.

The appeal lies in securing a prime location at an early stage, with the potential for strong capital appreciation as the area and development progress. However, off-plan investments also carry risks, including construction delays, concerns about build quality, and the financial reliability of the developer.

In this article, we’ll explore the key pros and cons of off-plan property investment in Phuket, offering practical insights to help you make informed decisions in one of Thailand’s most profitable real estate markets.

Pros of Off-Plan Investments in Phuket

1. Lower Purchase Prices: Off-plan properties are typically sold at 25–30% below the price of completed units. This allows investors to secure a property at a more attractive rate, with built-in value from the outset.
2. Potential for Capital Appreciation: As the project nears completion and the surrounding area develops, property values often rise. This can lead to strong capital gains by the time the unit is ready for resale or occupancy.
3. Customization Options: Buyers usually have the opportunity to select finishes, layouts, or fixtures during the early stages of construction, giving them more control over the final result and allowing for a more personalised living space.
4. Flexible Payment Plans: Most developers offer staged payment structures tied to construction progress. This reduces the financial burden of a full upfront payment and gives investors time to plan their finances.
5. Access to Prime Locations: Purchasing early in a project means having first choice of the most desirable units, such as top-floor condos, corner units, or those with sea views or direct pool access.
6. Developer Incentives: To attract early buyers, developers often offer bonuses like complimentary furniture packages, discounted upgrades, guaranteed rental returns, or limited-time promotional offers.

Cons of Off-Plan Phuket Investments

1. Project Risks: Delays or cancellations can happen, leaving investors waiting much longer than expected, or even facing financial loss if the development does not proceed as planned.
2. Quality Uncertainty: Since the property is purchased before completion, investors cannot inspect the final build or finishes, which can lead to concerns about the quality once the project is finished. If the developer has projects already completed, those could serve as a guideline to what they will deliver.
3. Market Fluctuations: Property values may change during construction. If market conditions decline, the resale or rental value of the property could be lower than initially expected.
4. Lack of Immediate Use: Buyers must wait for construction to be completed before they can move in or rent out the property, potentially missing out on rental income during the development period.
5. Dependence on Developer’s Reputation: The success of your investment depends heavily on the developer’s reliability and financial stability. Poor management or financial difficulties could jeopardise the project’s completion and your investment. If you contact us at Storm Real Estate, we are always happy to share our knowledge and experience with Phuket’s property developers and give you recommendations. 
6. Legal Considerations: Off-plan contracts can be complex, especially for foreign buyers. It is crucial to conduct thorough due diligence and seek legal advice to navigate contractual obligations and protect your interests.

Typical Payment Schedule for Off-Plan Properties

When purchasing off-plan properties in Phuket, buyers usually follow a structured payment plan aligned with the progress of construction. This staged approach helps manage cash flow and provides some security, as payments are linked to specific project milestones. Here is an overview of a typical payment schedule:

1. Reservation Fee: To secure the unit, a small reservation fee is required upfront. This is commonly around 100,000 Baht (approximately $3,300), though amounts vary depending on the developer and project.
2. Initial Deposit: After signing the sale and purchase agreement, buyers typically pay an initial deposit ranging from 10% to 20% of the total purchase price. This confirms the commitment and starts the official transaction process.
3. Stage Payments: The remaining balance is paid in instalments throughout the construction phase. These stage payments—often 5% to 10% each—are triggered by key milestones such as foundation completion, structural completion, and roofing. This method ensures funds are released progressively as the project advances.
4. Final Payment: Upon completion of construction, the buyer receives a notice to complete and must settle the remaining balance before taking possession of the property. This final payment accounts for any outstanding amount after the earlier deposits and stage payments.

Example Payment Structure

For a property priced at 10 million Baht, a common payment plan could look like this:

• Reservation Fee: 100,000 Baht
• Initial Deposit: 10–20% upon signing (e.g., 1,000,000–2,000,000 Baht)
• Stage Payments: 5–10% at each major milestone (foundation, structure, roofing)
• Final Payment: Remaining balance upon completion (e.g., if 6 million Baht has been paid, then 4 million Baht at completion)

If you have any questions, please don’t hesitate to reach out. We’re also happy to provide personalised recommendations tailored to your goals, budget, and requirements.

A. Nuno Isitemiz

With extensive expertise in Phuket's property market and Thai property laws, as well as deep connections with local developers, Nuno co-founded one of the largest real estate agencies in the region. Recently, he launched his own venture, Storm Real Estate, specializing in a carefully curated selection of properties that meet his high standards. Unlike larger agencies where frequent staff turnover can disrupt client relationships, Nuno is committed to offering a stable, one-on-one experience with himself or a member of his team of experienced property consultants, from initial consultation through purchase and beyond. By prioritizing quality over quantity, he ensures that each client’s unique needs and budget are met, making dream homes a reality.